Member Advocacy

Advocacy Campaign Rolls Out New Ads, Tools for Industry

The latest efforts of the No Plane No Gain (NPNG) advocacy
program include a new advertising campaign featuring
businessman and golf legend Arnold Palmer, a wealth of
up-to-date economic and survey information, and a robust set
of online resources in the Business Aircraft E-Valuation Toolkit
that assists business owners and flight operators in communicating
the value of their use of business aircraft.

Each of these new additions is designed to achieve the
goals set by NBAA and the General Aviation Manufacturers
Association (GAMA) earlier this year, when they jointly launched
No Plane No Gain. As part of its mission, the campaign provides
advocacy resources for people within the industry.

A Trusted Voice Speaks Out for Business Aviation

The new advertising with Arnold Palmer – who is well known in
business aviation circles as a longtime pilot, businessman and
industry supporter – includes three print ads and three complementary
30-second video ads that build on the already successful
NPNG campaign efforts.

"Arnold Palmer has always been an advocate for business
aviation because he has a firsthand understanding of its essential
role in serving towns and communities across the country,"
said NBAA President and CEO Ed Bolen. "For his entire career,
business aviation has made it possible for him to succeed in
golf and business – all from his hometown of Latrobe, PA, which
doesn't have airline service."

Unveiled during NBAA's 62nd Annual Meeting & Convention
in October, the ads feature Palmer speaking simply and powerfully
to the benefits of business aviation and at the same time
responding to those who would devalue the use of an airplane
for business.

For example, in one print ad, Palmer states: "People who
build business airplanes make things fly. People who use them
make things happen. A few others make things up." In one of
the video spots, Palmer states plainly: "For more than 50 years,
using business airplanes is the single most productive thing I
have done."

In his remarks at the Convention, Palmer asserted: "I know
the value of business airplanes. I know what they have done for
me and my companies. I know how important they are to my
hometown. And I know how important they are to this country.
So I wanted to speak out and help set the record straight."

GAMA President and CEO Pete Bunce explained that with
Palmer as the spokesman, "We will be able to draw even more
attention to the messages No Plane No Gain has been communicating:
that business aviation supports over a million jobs,
represents a lifeline for small and medium-size U.S. towns,
enables companies to compete and succeed, and helps provide
relief to people and communities in times of crisis."

The new ads convey the importance of business aviation to
successful companies and the diversity of companies that rely
on their airplanes to succeed – results that can be found in two
recent reports prepared for NPNG.

Study: Business Aviation = Business Success

A new study conducted by NEXA Advisors for NBAA and GAMA
found that by various well-accepted business measures, companies
using business aviation outperform those without aircraft.

"It's no surprise that America's best-performing and mostadmired
companies rely on business aviation to provide
concrete and unique competitive benefits that are reflected in
shareholder and enterprise value," Bunce said.

"This study shows what the people in the business aviation
community have always known," Bolen added. "A business
airplane is the sign of a well-managed company, because business
aviation helps companies of all sizes be more efficient,
productive and competitive."

The study concludes that "business aircraft users had a dominant
presence, on average of 92 percent, among the most
innovative, most admired, best brands, and best places to work,
as well as dominating the list of companies strongest in corporate
governance and responsibility."

"In conducting this study, we found that companies using
business aircraft outperform non-users across every key financial
and non-financial measure of business success," said the
study's lead author, Michael Dyment, managing director of
NEXA Advisors.

Dyment pointed to a number of compelling findings of the
study, including:

Average annual revenue growth on a market cap-weighted basis
was 116 percent higher for users of business aircraft than for
non-users.

Average annual earnings growth was 434 percent higher for users
of business aircraft than for non-users.

Total stock and dividend growth was 252 percent higher for users
of business aircraft than for non-users.

Total share price growth was 156 percent higher for users of business
aircraft than for non-users.

Market capitalization growth as measured by market value
growth was 496 percent higher for business aircraft users than
for non-users.

The study's authors examined how companies included in the
Standard & Poor's (S&P) 500 performed in revenue growth, profit
growth and asset efficiency from 2003 through 2008, the most
recent six-year period for which complete data was available.

Business aircraft use was tied to key enterprise drivers outlined in
the study; S&P 500 executives also were interviewed, and an independent
cross-reference of findings was performed.

Business Aviation Community Is Diverse, Survey Finds

A new survey of business aviation users, conducted by Harris
Interactive for NBAA and GAMA, depicts an industry in which the
typical company that uses business aviation is a small to mid-size
firm flying a single aircraft. This single plane is used by a broad mix
of employees on trips that mainly rely on community airports with
little or no airline service.

"These findings stand in stark contrast to recent mischaracterizations
of business aviation operators," Bunce said. "The reality is,
companies of all sizes rely on many different types of aircraft to be
more competitive, productive, efficient and successful."

Bolen agreed, adding: "Although the manufacture and use of
business aircraft contributes significantly to the national economy,
the industry is often not well understood. This important study will
help people see the real face of business aviation and underscore its
importance to citizens, companies and communities across the U.S."

The survey, based on actual interviews conducted with pilots
and passengers involved in business aircraft flights, finds:

Small companies operate the majority of business aircraft.
Most companies (59 percent) operating business aircraft have
fewer than 500 employees, and 7 in 10 have fewer than 1,000
employees.

Companies using business aviation typically operate only a single
aircraft. The majority (75 percent) of companies operate only one
turbine-powered aircraft.

Managers and other mid-level employees are the typical passengers
on business aircraft. Only 22 percent of passengers on
business aircraft are top management (i.e., a company's chairperson,
board member, CEO or CFO); most are other managers (50
percent) and or technical, sales or service staff (20 percent).

Employees use their time onboard company aircraft more effectively
and productively than when they are on airline flights. Some
passengers even estimate that they are more productive on the
company aircraft than they are in their office because they have
fewer distractions in flight.

A large majority of flights (80 percent) are made into secondary
airports or airports with infrequent or no scheduled airline service.

The survey was conducted online and by mail between June 1
and October 6, 2009, among 350 business aviation pilots, flight
department mangers and directors of aviation, and 289 business
aircraft passengers.

E-Valuation Toolkit Brings It All Together

"Those of us in the business aviation community understand well
how a business aircraft helps a company be more efficient, productive
and successful," Ed Bolen explained in unveiling the new online
resource known as the Business Aircraft E-Valuation Toolkit on the
NPNG web site. "The idea behind this resource is to give people the
tools they need to help them measure and explain the value of the
asset to others."

Pete Bunce added that the toolkit provides the "information
for articulating the value of a business aircraft literally at people's
fingertips. We're confident that this resource will be indispensible
in helping the industry clearly communicate the benefits of business
aviation."

The two leaders announced the launch of the new resource
during NBAA's Convention as part of an update on NPNG with the
news media.

The Business Aircraft E-Valuation Toolkit identifies five basic
resources every company in business aviation should have for
measuring an aircraft's value – regardless of the size or type of the
business involved:

A policy statement regarding use of the company's aircraft;

A method for establishing metrics to quantify an aircraft's value;

A document-retention program to catalog relevant information
about the missions conducted with the aircraft;

A presentation for a company's internal audiences, so that
employees can become advocates for the flight operation; and

A presentation for external audiences – including the news media,
lawmakers and others – so that a company can promote the benefits
of business aviation.

The toolkit contains essential guidance, including documents
outlining best practices, sample templates and other resources.
The documents are accompanied by a series of tutorial videos that
walk viewers through the key considerations for developing the
five resources that measure an aircraft's value. Each of the video
presenters outlines the best practices currently used to measure
and explain the value of business aviation, and provides tips and
tools for applying those best practices.

Business Aircraft E-Valuation Toolkit

Available on the No Plane No Gain web
site, the new toolkit identifies five basic
resources every company in business
aviation should have for measuring an
aircraft's value – regardless of the size or
type of the business involved.

ABOUT INSIDER

Business Aviation Insider, the official Member publication of NBAA, serves as a helpful resource for all NBAA Members, regardless of the size of their business. NBAA mails the printed Business Aviation Insider to all Members, and only Members have full access to all online articles and PDF downloads.